Administrative problems

Cool King’s business focus is on corporate and commercial sectors. These include institutional and commercial establishments, industry and government organizations. In accordance with the nature of products and markets, business drivers and competitive positioning, Cool King is organised as several business units. 

Central Air-conditioner Systems: This segment involves manufacturing, system design, installation, commissioning and support of large central air-conditioning plants, packaged air-conditioners and ducted split air-conditioners. CKL manufactured a wide range of chillers, including centrifugal, screw, reciprocating and scroll. The packaged air-conditioning range included floor and ceiling mounted packaged air-conditioners and ducted split air-conditioners. This line of business contributed 63% of the CKL’s revenue in 2002.

Cooling Products: Cool King offered a wide range of contemporary window and split air-conditioners, apart from manufacturing and marketing a wide range of commercial refrigeration products and services that cater to the industrial and commercial sectors. Commercial Refrigeration: This segment includes a wide range of products such as cold storages, water coolers, bottled water dispensers, deep freezers, visi coolers and ice cubers. In the storage-type water cooler market CKL was the leader with a market share of 45%.

Professional Electronics and Industrial Equipment: Cool King is the exclusive distributor in India for many internationally renowned manufacturers of hi-tech, professional electronic equipment and services, as well as industrial products and systems. The electronics division comprise several products and services, catering to diverse markets, such as Analytical Instruments, Medical Electronics, Industrial Products & Systems, Data Communication Products and Systems, Material Testing Machines & Systems, Test & Measuring Instruments, and Servicing of professional Electronics Equipment. This line of business contributed 8% of the company’s revenue in 2002.

Business Divisions: CKL is structured as six strategic business units primarily to address each market segment effectively. Special Projects Division (SPD) handles large comfort and industrial air-conditioning projects in the domestic and export markets, each through a self-contained project team. The Air-conditioning Projects Division (ACPD) caters to the medium sized central air-conditioning business for industrial and comfort applications.

The Packaged Air-conditioner Division (PAD) offers custom-designed packaged comfort air-conditioning solutions for commercial establishments through a well-trained dealer network. These jobs generally involve standard, floor-mounted Packaged AC units and Ducted Split units, as well as small chillers. They are short duration projects. The Central Air-conditioner Service Division (CASD) managed the after-sales service and promoted various service products including maintenance, energy audit, retrofitting and revamping.

The Refrigeration and Air-conditioning Products Division (RAPID) has four departments: (a) Cooling Products Department: Offered window and split air-conditioners, water coolers, deep freezers, visi coolers, bottled water dispensers and ice cubers. These are standard products and are marketed through a wide spread dealer network. (b) Cold Storage Department: Marketed customised pre-fabricated cold storages to a wide range of industries such as horticulture, dairy, food, poultry, hospitality and pharmaceuticals. (c) Commercial Kitchen & Laundry Equipment Department offers a wide range of commercial kitchen and laundry equipment to the hospitality industry. (d) Customer Service Department: Handled after-sales service for all the products of this division.

Source:

Company website [1]Prepared by Professors P.K. Sinha and N. Ravichandran. The research support by Nilmadhab Mandal's's during the preparation of this case is greatly appreciated. Teaching material of the Indian Institute of Management, Ahmedabad, is prepared as a basis for class discussion. Cases are not designed to present illustrations of either correct or incorrect handling of administrative problems.